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Talking Points, June 24 - July 8, 2009

Trade is the focus of this week's USC U.S.-China Institute newsletter. US officials allege Chinese infractions and the Chinese government says it punished Google for its ongoing failure to police its search results. Chinese oil consumption has risen dramatically and the nation is seeking additional resources overseas. And, as always, Talking Points includes a comprehensive list of China-related events across North America.

June 24, 2009

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Talking PointsJune 24 - July 8, 2009

Twice in the past week, United States government trade representatives charged the Chinese government with unfair trade practices.

On Tuesday the U.S. and European Union went to the World Trade Organization, arguing China’s government is using illegal tariffs and quotas to limit exports of bauxite, coke, and manganese, essential raw materials for a variety of products. U.S. steel producers and others argue that China restricts exports of these products so they will be available for Chinese manufacturers at favorable prices.

Yesterday, the U.S. Commerce Secretary Gary Locke and U.S. Trade Representative Ron Kirk wrote to Chinese officials to protest the Chinese government’s order that computer manufacturers include the Green Dam Youth Escort internet filtering software with all computers sold in China. Chinese officials say the software is needed to keep children from accessing pornography. Complaints about the mandate include the short notice given, alleged performance and security flaws in the software itself, the inclusion of politically sensitive terms among those to be blocked, and the cost imposed on already hard-pressed companies.

Some believe the domestic and international backlash against the Green Dam mandate provoked the Chinese government’s move this week to abruptly deny internet users in China access to some Google features. Authorities accused Google of “[spreading] lots of pornographic, lewd and vulgar content, which is in serious violation of Chinese laws and regulations." Some bloggers posted screen shots comparing results from Baidu.com, the leading search engine in China, with those from Google.cn. They found the Baidu results at least equally racy and argued Google was targeted because it is a foreign company.

Months ago, top American and Chinese leaders argued that trade barriers would exacerbate the economic crisis, but even then officials in both countries were condemning “protectionist” elements in the policies and practices of the other. Many will monitor the response to this week’s actions for signs of hardening lines in Washington and Beijing. Our Challenge of China documentary has a segment focusing on trade. You can follow this via the daily updates section of our web magazine, US-China Today.

Trade in some industrial commodities is booming. Many Chinese firms took advantage of the global downturn to buy large quantities of metals and other materials. This buying helped boost global prices for copper by 62% this year. Some analysts argue that this Chinese demand will not continue and that prices will slump.

So far, this has not happened for oil. Oil consumption has fallen in the United States since 2005, but it continues to rise in China. To meet this demand, China is ramping up imports and acquiring new resources. Imports in May were the second highest ever and were 6% higher than in May 2008. Sinopec, one of China’s three oil giants, announced that it was buying Addax Petroleum, a Canadian firm, for $7.2 billion. Addax’s board of directors has endorsed the sale. Addax’s assets include oil off the West African coast and in Iraq.

The United States and China are the world’s third and fourth largest producers of crude oil, but U.S. demand has long outstripped domestic resources and China’s rapid economic development and embrace of cars has caused oil consumption there to nearly double since 1998. China’s oil consumption, though, is only 42% of America’s. And on a per capita basis, American oil consumption dwarfs Chinese consumption. In 2008, per capita American consumption was more than 23 barrels of oil, whereas per capita Chinese consumption was just over 2 barrels. American reliance on automobiles for transportation accounts for the greatest share of the consumption disparity, though about 30% of American oil consumption is for power generation and heating. The charts below offer comparisons of US-China total and per capita consumption since 1980.

You can get a sense of what it’s like to work in a Chinese oil field from Crude Oil Part 2, a film screening this week at the Hammer Museum as part of the Los Angeles Film Festival. High school teachers from outside Los Angeles are invited to apply for the USCI’s residential summer institute focusing on East Asia since 1800. It starts on July 27 but only a few openings remain. Apply now if you’re interested.

Going to be in Beijing later this summer? The USC School of Architecture is sponsoring an exhibition there drawing on works from American architecture schools over the past decade. It opens on August 21. Details about these events are available below and in the calendar section of our website.

06/24/2009 - 06/25/2009: Crude OilHammer Museum Gallery 6Time: 11:30amCost: FreeAn audacious undertaking for both filmmaker and audience, this film installation documents a workday at a remote Chinese oil field, from a stolen nap in a break room to the massive drills plunging into the earth.

06/27/2009: First EmperorBowers Museum2002 North Main St, Santa Ana, 92706Phone: (714) 567-3600Time: 1:30PMBased on the latest research, including location photography at key sites in China, this film sheds new light on the achievements, ambitions, and legacy of the enigmatic First Emperor of China—an emperor who wished to reign for all eternity. 40 minutes.

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Events

Things China Working Group is an informal group to explore research interest in the material networks, systems, economies, media and practices of communication pursued within China or between China and its national and international partnerships. Open only to USC graduate students and faculty.

Things China Working Group is an informal group to explore research interest in the material networks, systems, economies, media and practices of communication pursued within China or between China and its national and international partnerships. Open only to USC graduate students and faculty.